BUSINESS JOURNAL OWNER HIRES ADVISER TO ANALYZE OFFERS

A Kansas City, Mo., newspaper chain that publishes a weekly business review in Miami has hired two investment bankers to analyze recent acquisition proposals from investors.

American City Business Journals, which owns the South Florida Business Journal and 34 other weeklies, has retained Drexel Burnham Lambert and Hambrecht & Quist to look over proposals. The chain has received no specific purchase offers for its publications, according to a statement, but it has had inquiries.

Michael Russell, chairman of American City, declined comment.

American City bought the 10 Scripps Howard Business Journals, including the Miami-based South Florida Business Journal, last November in a $24 million stock acquisition. American City merged the two chains and started operations Jan. 1.

Sean Breen, publisher of the South Florida Business Journal, said hiring investment bankers is not the same as selling the company.

"They needed investment banking services and that's what they've done," Breen said. "The company has changed so much in the last year it needs to be looked at from the outside. That can take the pressure off the company management to run the company instead of having to keep answering questions about selling."

Breen said he's heard a few rumors about the possible sale of the company since American City bought the Scripps Howard papers last year.

"It's a very attractive company, and media companies are very highly valued no matter what we do," he added. "But to my knowledge they're not planning to sell."

American City Business Journals publishes 35 weekly business newspapers in 35 U.S. cities. It also owns four legal newspapers, two magazines and several business directories. It is the largest publisher of weekly business journals in the United States.